Detroit automakers ratchet up talks with the UAW as strike deadline approaches

Spencer Platt/Getty Images News

Negotiations between Detroit automakers and the United Auto Workers union are heating up, with the strike deadline just one week away. The UAW has made a labor contract counterproposal on economic issues to Ford Motor (F) and Stellantis (STLA) is planning to make its counteroffer to the union this week. UAW representatives are meeting with General Motors (NYSE:GM) execs later on Thursday.

The UAW reiterated that 97% of its members voted in favor of authorizing a strike if an agreement is not reached before September 14. The key concessions that the union is looking for are a 46% pay raise, a 32-hour work week with 40 hours of pay, and pension benefits for new hires.

Early on Thursday, Ford Motor (F) announced that nearly 8K UAW-represented Ford employees received a substantial raise on Labor Day. On average, those employees now earn $4.33 more per hour, or $9,000 a year. The increase could top $10K a year with overtime. The pay hikes were negotiated by Ford and the UAW in 2019 to shorten the time it takes workers to reach the average top wage rate of $32 an hour. "These pay raises are an example of Ford’s commitment to improving the lives of our hourly workforce,” said Ford (F) executive Bryce Currie. With the move, 80% of all Ford’s UAW-represented hourly employees are now at the top wage rate. Those at the top wage rate are earning higher wages than 90% of all hourly employees in the U.S. auto industry, according to data from the Bureau of Labor Statistics. The announcement was separate from the negotiations over the new UAW contract.

Ford (F), General Motors (GM), and Stellantis (STLA) were all down less than 1% in premarket trading on Thursday. Over the last six weeks, GM is down 10.0%, F is 6.7% lower, and STLA is off 7.3%.

More on auto labor drama

• Tesla, Rivian and other EV pure plays look for an edge while Detroit automakers face crippling strike
• Detroit auto giants face tough labor decisions while Tesla cruises ahead
• Summer of strikes: Why is labor rising across the U.S.?

Comments

[financeminister]

We've seen this movie from the 80s before.

[kmoist]

Maybe all the Mexicans crossing the border illegally will stay in Mexico where it looks like all these jobs will be. Unions will greed themselves out of existence.

[6228371]

"The pay hikes were negotiated by Ford and the UAW in 2019 to shorten the time it takes workers to reach the average top wage rate of $32 an hour."

A salary of $32 an hour for assembly line workers? What do assembly line workers in Mexico make? Perhaps 10% of that?
Base pay of $32 plus benefits(healthcare, pension, paid vacation, sick leave, etc.) Does that bring the actual cost per hour to over $65?

[High Yield FIREVestor]

Blame the legacy automakers Inability to transition fully to EV and compete with Tesla on Union UAW greed.

Big bonus package from GM and F, not enough for them. They're sucking GM and F dry. Biden unions for you! Bloodsucking parasite, UAW.

[d0d0ramefasolated0]

@FirstFIREWealth_P01135809 If they had they would already be bnkrt.

[pftthree]

Ford is being proactive at offering raises and hasn't had an issue with the UAW since the 70s, so

[OverTheHorizon]

Unavoidable?

“Here’s why Biden can’t do much to prevent an auto strike”
www.cnn.com/...

[TPizback]

This is hilarious, The Biden Administration (the unions best friend), is forcing the automakers to build unaffordable EVs which no one wants, coupled with the union demands which will drive up the price of already unwanted EVs.
Result: The automakers will go bankrupt, the union members will be unemployed and the Biden Administration and its zealot 'existential climate change' supporters will have gotten what they want. No automobiles EV or ICE.

They are all sightless in a savage land.
FJB.

[d0d0ramefasolated0]

@TPizback Don't forget the unrelenting calfe mileage standards that are unobtainable and by regulation give us vehicles that are plastic, bigger trucks to meet the way the regs are written, and driving the makers out of business. It's not the workers.

[vooch]

Go long Automation companies

[Saries]

The union knows that it is outrageous. They are just trying to push the goalposts so far out that they are already in the end zone when the negotiations are over.

[richa159]

Many suppliers, still recovering from covid and supply chain issues, don't have the cash to survive a strike. They need to be careful, or the only option will be to buy foreign vehicles. No one gets pensions anymore - white collar employees don't. 401k in the vehicle of today. I really hope they understand the damage they can do to suppliers and non union workers if it is a prolonged strike.

[Mr. Value]

I’m in support of workers rights but 40 hours of pay for a 32 hour work week? We should all be so lucky

[PortguyofVA]

@Mr. Value Yep. 32 hour work week with 40 hours of pay, is definately an over reach. I also suspect pension to new hires will cause a lot of angst.

[nidneurons]

@Mr. Value I demand to get maximum payment without havin't to work at all.

[rcpj1]

@Mr. Value don't forget the 46% raise on top of it. About 20 years down the road, Ford will be defaulting on its pension plan and these union guys will be complaining. Plus, personal transportation will be so expensive, many more people will be walking, bicycling and taking public transport to work. This is not good for the public interest and very bad for long term economic prosperity of the country.